Analysts warn that new tariffs imposed by President Trump could lead to a dramatic increase in the cost of the iPhone 16 Pro, potentially tripling retail prices. While Trump aims to reshore manufacturing to the US through these tariffs, experts believe that Apple cannot produce the iPhone profitably in the US due to vastly higher assembly costs. Currently at about $30 per unit in China, costs could increase dramatically if production were shifted to the US. The tariffs apply broadly, affecting over 90 countries and raising concerns about the global tech market.
The price of producing the next-generation iPhone 16 Pro could rise from $580 to $850 due to new tariffs, highlighting the burden on tech manufacturing.
Trump's 'Liberation Day' tariff strategy poses a severe risk to Apple, suggesting a retail price increase of iPhone 16 Pro from $1,100 to $3,500 if costs are passed on.
Experts argue reshoring isn't viable for Apple, stating that producing competitively priced smartphones in the US appears practically impossible due to expected tenfold cost increase.
The introduction of a baseline 10% tariff and bespoke rates for over 90 countries emphasizes a shift towards protectionism that could reshape global trade dynamics.
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